In Short:
Adani Group has proposed to develop Nairobi airport through a public-private partnership, in response to concerns over lack of transparency. The airport is a key hub in East Africa for cargo and passenger traffic, particularly for Kenya Airways. Adani Group, which already owns several airports, plans to invest in a new terminal, runway, and facilities at Nairobi airport. Key stakeholders are involved in the approval process.
Adani Group’s Proposal to Develop Nairobi Airport
Exciting news coming from Kenya Airports Authority (KAA)! The Adani Group has submitted a proposal to develop Nairobi airport on a public-private partnership basis. This is a great opportunity to enhance the infrastructure at the airport and improve the overall passenger experience.
Nairobi Airport: A Key Hub in East Africa
Nairobi airport, a hub for Kenya Airways, holds a significant position as the seventh busiest airport in Africa in terms of passenger traffic in 2022. It serves as an important gateway in East Africa, particularly for cargo transportation, especially for exports of cut flowers.
Ensuring Transparency and Engagement
After facing local protests over lack of transparency in the process, KAA disclosed the details of the proposal. There were concerns about a “secret deal,” but the government clarified that the airport is not being sold. It’s all about enhancing the infrastructure with the help of private investment.
Adani Group’s Strategic Investments
Adani Group, known for its strategic investments, currently manages eight domestic airports, with the upcoming Navi Mumbai airport in the pipeline. The group has also recently signed an agreement to acquire a majority stake in a container terminal in Tanzania, showing its commitment to infrastructure development.
Development Plans for Nairobi Airport
In the proposal, Adani Group aims to invest in a new passenger terminal building, a second runway, and refurbishment of existing facilities at Nairobi airport. These developments will not only enhance the airport’s capacity but also improve the overall passenger experience.
Ensuring Proper Approvals and Reviews
KAA CEO, Henry Ogoye, highlighted that the investment proposal will undergo thorough technical, financial, and legal reviews as per the guidelines of the Public Private Partnerships Act 2021. The process will involve stakeholder engagement, national treasury approval, attorney general clearance, and cabinet approval to ensure transparency and compliance.
Securing Private Funding for Development
Ogoye emphasized that the airport’s expansion and development cannot be solely financed by public funds. Private investment is crucial to fuel the growth and ensure the airport’s competitiveness. He reassured that there will be no job losses due to the proposed development.
This partnership between Adani Group and KAA holds promising opportunities for the future of Nairobi airport. Stay tuned for more updates on this exciting development!
